THE PAKISTAN DEVELOPMENT REVIEW
The Impact of the Uruguay Round on World Economy
International trade as an engine for economic growth is an accepted proposition in modern economic literature. Statistical and econometric analysis of crosssection and time-series data of the growth in exports and growth in GOP shows a very high correlation between the two. Normally growth in exports is twice or more than the growth in GOP for most fast-growing economies particularly the East Asian Tigers. There is hardly any country which over a decade has had a growth in GOP higher than the average rate of growth of exports in that decade. Export led growth has been vindicated by one economy after another specially in East Asia. It is therefore of great importance that the international trading system allows the free flow of goods in order to promote the growth of the world economy as a whole. After the Second World War, plans were drawn up for an International Trade Organisation (ITO) at Havana but when the US Congress declined to approve it, it was dropped. The demise of the ITO, however did not do away with the need for an international organisation to deal with negotiations for reducing tariff and non-tariff barriers to international trade. Twenty-three nations agreed to continue extensive tariff negotiations for trade concessions at Geneva which were incorporated in a General Agreement on Tariffs and Trade (GATT). GATT has provided a permanent platform for reducing trade barriers. The fundamental objective of GATT is to achieve free trade through reduction in tariff and non-tariff barriers on the basis of non-discrimination, reciprocity and national treatment……………..